See Also:

Accounting Policy on Inventory

SPARE PARTS, SUPPLIES AND FUEL

Spare parts (principally aircraft-related) are reported at weighted-average cost. Allowances for obsolescence are provided for spare parts currently identified as excess or obsolete as well as expected to be on hand at the date the aircraft are retired from service. These allowances are provided over the estimated useful life of the related aircraft and engines. The majority of FedEx’s supplies and fuel are reported at weighted-average cost.